Pound Sterling Price News: GBP/USD weakens to around 1.3365 during early European session

GBP/USD softens as traders eye BoE rate cut next week

The GBP/USD pair trades in negative territory near 1.3365 during the early European trading hours on Thursday, pressured by the rebound in the US Dollar (USD). Nonetheless, the potential downside might be limited after the US Federal Reserve (Fed) delivered a rate cut at its December policy meeting. Traders brace for the US weekly Initial Jobless Claims report, which will be published later on Thursday. 

Markets continue to digest the largely anticipated rate cut by the Fed on Wednesday. The US central bank reduced its key interest rate for the third time in a row at its December meeting but signaled that it may leave rates unchanged in the coming months. Two Fed officials voted to keep the rate unchanged, while Stephen Miran, whom Trump appointed in September, voted for a larger rate cut. Read more...

GBP/USD rebounds following Fed’s third straight rate trim

GBP/USD punched a fresh hole into seven-week highs on Wednesday, rising back into the 1.3400 neighborhood after the Federal Reserve (Fed) delivered a widely expected third straight interest rate cut. Fed Chair Jerome Powell gave a particularly cautious showing, hinting that the Fed could be poised for another extended “wait and see” period. Global markets largely brushed off the Fed head’s warnings, and rate markets are already pricing in a faster pace of rate cuts over the next two years than the Fed itself expects.

Although the Fed projected only one cut for next year, Chair Jerome Powell signaled that rate hikes are essentially off the table, a stance traders welcomed. Futures markets reacted immediately, pricing in a strong chance of two or more cuts in 2026. Stocks had drifted sideways heading into this final meeting of the year, but the Fed’s decision aligned with expectations and helped stabilize sentiment. Read more...

GBP/USD surges after Fed rate cut, traders focus on Powell's next steps

GBP/USD climbs on Wednesday after the Federal Reserve (Fed) decided to cut rates, as expected, on a 9-3 vote split, which witnessed two members voting for holding rates, while Fed Governor Stephen Miran voted for a 50-basis-point cut. At the time of writing, the pair trades at 1.3350, up 0.46%.

The FOMC vote split was 9–3: Governor Stephen Miran dissented in favor of a 50-bps cut, whereas Jeffrey Schmid and Austan Goolsbee preferred to keep rates unchanged. The Summary of Economic Projections (SEP), including the updated dot plot, showed that most officials project the fed funds rate to stand near 3.4% next year, implying just one 25-bp reduction in 2026, according to the median. Read more...